Index of Highest Value (IHV) Indicator
The Time-Stamp That Reveals How Fresh Your Peak Really Is
While most traders watch *how high* price has gone (Highest High Value), the Index of Highest Value (IHV) answers a smarter question: *when* did that high happen? It returns a simple integer (0 to Nā1) telling you exactly how many bars ago the peak occurred within your look-back window. Zero means 'right now ā fresh high today!' while higher numbers mean the peak is aging. It's the perfect companion for breakout systems, trailing stops, and spotting when momentum is getting stale ā adding the crucial time dimension to extreme values.
The Clean Formula
Straightforward logic:
IHV_t = N - 1 - \text{index of max}(P_{t-N+1 \to t})
Where index 0 = oldest bar, Nā1 = current bar.
Result: 0 if current bar is the high, Nā1 if the oldest bar still holds it.
Reading the Age Meter
What the number means:
- 0: Brand-new high today ā momentum hot.
- 1ā3: Peak very recent ā trend still fresh.
- 4 to N/2: Peak aging ā monitor for weakness.
- > N/2: High getting stale ā momentum fading.
- Nā1: Oldest bar holds high ā peak rolling off next bar.
Parameter Choices
N sets the window:
- Short (5ā10): Sensitive ā intraday micro peaks.
- Medium (20ā50): Balanced ā daily swing freshness.
- Long (100ā252): Macro ā 52-week high age tracking.
Pro Trading Applications
Powerful uses:
- Fresh breakouts: Only enter when IHV = 0 ā true new high.
- Trailing exits: Exit long if IHV > threshold (e.g., 10ā12) ā no new high in too long.
- Mean reversion: High IHV = old peak ā fade rallies in ranges.
- Indicator timing: IHV on RSI/ATR ā how long since momentum/volatility peak.
Turtle traders used similar logic ā fresh highs only.
Strategy Templates
Quick setups:
- Fresh momentum: Long when price > HHV and IHV = 0.
- Pullback validation: Stay in trend if IHV ā¤ 5 ā recent high confirms strength.
- Volatility squeeze: IHV on ATR nearing N ā contraction, prep breakout.
Strengths and Limitations
The Wins
- Instant age of peak ā zero lag freshness check.
- Works on any series ā versatile timing tool.
- Great for exits and filtering stale moves.
- Simple and intuitive.
The Gotchas
- Flips quickly on spikes ā needs filters.
- Descriptive only ā pair with rules for action.
- Oscillates in tight ranges.
- No magnitude info ā use with HHV.
Your IHV Launch Checklist
- Choose series (High common) and N.
- Plot with HHV for full context.
- Backtest age thresholds for entries/exits.
- Combine with trend/volume confirmation.
- Alert on IHV = 0 or high stale values.
- Review N in different market regimes.
Key Takeaways
IHV tells you exactly how many bars ago the peak occurred ā freshness meter.
0 = brand new high, high values = stale momentum.
Perfect for fresh breakouts, trailing exits, and filtering old peaks.
Adds time dimension to extremes ā crucial for timing.
Simple but powerful ā know when your high is hot or history. Stay fresh and trade strong!
Index of Highest Value (IHV) Indicator
The Time-Stamp That Reveals How Fresh Your Peak Really Is
While most traders watch *how high* price has gone (Highest High Value), the Index of Highest Value (IHV) answers a smarter question: *when* did that high happen? It returns a simple integer (0 to Nā1) telling you exactly how many bars ago the peak occurred within your look-back window. Zero means 'right now ā fresh high today!' while higher numbers mean the peak is aging. It's the perfect companion for breakout systems, trailing stops, and spotting when momentum is getting stale ā adding the crucial time dimension to extreme values.
Table of Contents
The Clean Formula
Straightforward logic:
IHV_t = N - 1 - \text{index of max}(P_{t-N+1 \to t})
Where index 0 = oldest bar, Nā1 = current bar.
Result: 0 if current bar is the high, Nā1 if the oldest bar still holds it.
Reading the Age Meter
What the number means:
- 0: Brand-new high today ā momentum hot.
- 1ā3: Peak very recent ā trend still fresh.
- 4 to N/2: Peak aging ā monitor for weakness.
- > N/2: High getting stale ā momentum fading.
- Nā1: Oldest bar holds high ā peak rolling off next bar.
Parameter Choices
N sets the window:
- Short (5ā10): Sensitive ā intraday micro peaks.
- Medium (20ā50): Balanced ā daily swing freshness.
- Long (100ā252): Macro ā 52-week high age tracking.
Pro Trading Applications
Powerful uses:
- Fresh breakouts: Only enter when IHV = 0 ā true new high.
- Trailing exits: Exit long if IHV > threshold (e.g., 10ā12) ā no new high in too long.
- Mean reversion: High IHV = old peak ā fade rallies in ranges.
- Indicator timing: IHV on RSI/ATR ā how long since momentum/volatility peak.
Turtle traders used similar logic ā fresh highs only.
Strategy Templates
Quick setups:
- Fresh momentum: Long when price > HHV and IHV = 0.
- Pullback validation: Stay in trend if IHV ā¤ 5 ā recent high confirms strength.
- Volatility squeeze: IHV on ATR nearing N ā contraction, prep breakout.
Strengths and Limitations
The Wins
- Instant age of peak ā zero lag freshness check.
- Works on any series ā versatile timing tool.
- Great for exits and filtering stale moves.
- Simple and intuitive.
The Gotchas
- Flips quickly on spikes ā needs filters.
- Descriptive only ā pair with rules for action.
- Oscillates in tight ranges.
- No magnitude info ā use with HHV.
Your IHV Launch Checklist
- Choose series (High common) and N.
- Plot with HHV for full context.
- Backtest age thresholds for entries/exits.
- Combine with trend/volume confirmation.
- Alert on IHV = 0 or high stale values.
- Review N in different market regimes.
Key Takeaways
IHV tells you exactly how many bars ago the peak occurred ā freshness meter.
0 = brand new high, high values = stale momentum.
Perfect for fresh breakouts, trailing exits, and filtering old peaks.
Adds time dimension to extremes ā crucial for timing.
Simple but powerful ā know when your high is hot or history. Stay fresh and trade strong!
Related Terms
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